Important Notice This presentation contains general information - PowerPoint PPT Presentation

Important Notice This presentation contains general information about Reliance Worldwide Corporation Limited’s activities at the date of presentation (26 February 2018). It is information given in summary form and does not purport to becomplete. The presentation is not an offer or invitation for subscription or purchase of or a recommendation of securities in any jurisdiction. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment is appropriate. Information, including forecast information, in this presentation should not be considered as a recommendation in relation to holding, purchasing or selling shares, securities or other instruments in Reliance Worldwide Corporation Limited. Due care and attention has been used in the preparation of forecast information. However, actual results may vary from forecasts and any variation may be materially positive or negative. Forecasts by their very nature are subject to uncertainty and contingencies many of which are outside the control of Reliance Worldwide Corporation Limited. Past performance is not a reliable indication of future performance. Except as required by applicable regulations or laws, Reliance Worldwide Corporation Limited does not undertake any obligation to publicly update or review any forward looking statements whether as a result of new information or future events. The sum totals throughout this presentation may not add exactly due to rounding differences. The information in this presentation remains subject to change without notice. Circumstances may change and the contents of this presentation may become outdated as a result. This presentation forms part of a package of information about Reliance Worldwide Corporation Limited. It should be read in conjunction with the Appendix 4D, 31 December 2017 Half Year Financial Report and the Results Announcement also released on 26 February 2018. INVESTOR PRESENTATION 1HFY18 RESULTS 2018 | PAGE 1 Reliance Worldw ide Corporation Limited

Agenda 1. Highlights 3 2. Financial Performance 6 3. Growth Strategy and Outlook 15 INVESTOR PRESENTATION 1HFY18 RESULTS 2018 | PAGE 2 Reliance Worldw ide Corporation Limited

1. Highlights INVESTOR PRESENTATION 1HFY18 RESULTS 2018 | PAGE 3 Reliance Worldw ide Corporation Limited

1HFY18 Achievements Continued strong sales growth in the Americas led by core SharkBite products  Double digit growth in external sales in Australia and the UK  Completed integration of Holdrite acquisition with performance in line with  expectations Completed seamless rollout of product to all 1,700+ Lowe’s stores  Ongoing market penetration in North America for brass PTC with SharkBite products  now in more than 23,000 outlets, an unrivalled distribution network Execution of manufacturing expansion program to meet future demand on track  Investing in product development, commercial capabilities and sales resources to  drive future growth Launched the Streamlabs™ brand, a new growth platform for RWC, and its first  product, the Smart Home Water Monitor, at the Consumer Electronics Show (CES) in January 2018 INVESTOR PRESENTATION 1HFY18 RESULTS 2018 | PAGE 4 Reliance Worldw ide Corporation Limited

1HFY18 Financial Highlights    Net sales EBITDA NPAT $362.6 million $79.3 million $41.5 million +28% growth 1 , +31% on a +25% growth 1 , +27% on a 8.0 cents per share (basic), +19% constant currency basis constant currency basis growth 1     Interim dividend Continued strong Balance Sheet strength declared of 3.5 cps sales growth from Americas Leverage ratio at 1.8x. An 8% Represents dividend payout ratio of reduction from 30 June 2017 44% of NPAT +34% growth 1 , +39% on a constant currency basis Solid financial performance in 1HFY18. On track to deliver increased full year EBITDA forecast of between $150m and $155m. 1 Growth rates expressed as change over comparative six month period ending 31 December 2016 INVESTOR PRESENTATION 1HFY18 RESULTS 2018 | PAGE 5 Reliance Worldw ide Corporation Limited

2. Financial Performance INVESTOR PRESENTATION 1HFY18 RESULTS 2018 | PAGE 6 Reliance Worldw ide Corporation Limited

1HFY18 Results Commentary June year end (A$m) 1HFY18 1HFY17 Variance (%)  Net sales up 28% compared to 1HFY17 (+31% on a 362.6 282.7 28.3% Net sales constant currency basis) EBITDA 79.3 63.7 24.5%  Solid performance across all 3 segments 1 : Americas (+34%), Asia Pacific (+10%) and EMEA (+24%) EBIT 67.8 54.7 23.9%  Continued strong demand for PTC fittings and NPAT 41.5 35.3 17.5% accessories globally (>25% growth) Key metrics  Solid contribution from Holdrite EBITDA margin 21.9% 22.5% (60) bps  EBITDA up 25% compared to 1HFY17 (+27% on a constant currency basis) EBIT margin 18.7% 19.3% (60) bps  Gross margin flat as production scale and efficiencies offset rises in copper and other input costs  Operating expenses in line with plan but higher than last year to support growth initiatives 1 Segment net sales growth includes intercompany sales between segments INVESTOR PRESENTATION 1HFY18 RESULTS 2018 | PAGE 7 Reliance Worldw ide Corporation Limited

Segment Results – Americas June year end (A$m) 1HFY18 1HFY17 Variance Net sales 1 266.8 198.8 + 34.2% EBITDA 52.9 37.1 + 42.6% EBITDA margin 19.8% 18.7% + 110 bps Financial commentary Operational commentary  Net sales growth of 34% compared to 1HFY17 (+39% on a  Holdrite integration completed on schedule, with sales and constant currency basis) EBITDA growing as expected  Continued strong demand growth across Retail/Hardware  Completion of rollout and announced changes to product channel availability and assortment at Retail distributors, with sales growing in line with plan  Gross margin improvement resulting from product mix, inclusion of Holdrite, improved scale in USA manufacturing  Signed over 2,000 stores with a long standing Hardware as well as ongoing efficiency improvement and despite rise channel customer to display an expanded PTC and pipe total in the cost of copper solution offering  Increased supply chain costs due to volume driven SG&A  Maintained strong delivery performance; >99% order fill rate activities as well as investment to support ongoing growth to the Retail channel continues to be achieved  Expansion into residential and commercial new construction accelerating via Holdrite and EvoPEX products  Continued manufacturing capacity expansion to meet expected future demand growth progressing on plan 1 Segment net sales includes intercompany sales between segments INVESTOR PRESENTATION 1HFY18 RESULTS 2018 | PAGE 8 Reliance Worldw ide Corporation Limited

Segment Results – Asia Pacific June year end (A$m) 1HFY18 1HFY17 Variance Net sales 1 121.6 110.9 + 9.6% EBITDA 29.9 27.1 + 10.3% EBITDA margin 24.6% 24.4% + 20 bps Financial commentary Operational commentary  Net sales growth of 10% compared to 1HFY17  Strong SharkBite production  Double digit growth in external sales, with strength across  Supply chain improved for sale and distribution of PEXa pipe from Spain product categories, particularly PEX piping systems  Undersink thermostatic valves in stock and ready for launch  Continued growth in intersegment sales, driven by ongoing demand in the Americas and preparation for the northern  Preparation well underway for EvoPEX launch hemisphere winter  Stable margins supported by:  Ongoing procurement savings and strong recoveries due to high SharkBite production helping to offset rising copper and energy costs  Modest inflationary rises and productivity improvements from capital investment to support growth Note 1: Segment net sales includes intercompany sales between segments INVESTOR PRESENTATION 1HFY18 RESULTS 2018 | PAGE 9 Reliance Worldw ide Corporation Limited

Segment Results – EMEA June year end (A$m) 1HFY18 1HFY17 Variance Net sales 1 29.4 23.7 24.1% EBITDA (0.4) 0.8 nm EBITDA margin (1.4%) 3.4% - 480 bps Financial commentary Operational commentary  Net sales increase of 24% compared to 1HFY17 (+23% on a  Ongoing production efficiency improvements in Spain facility as the constant currency basis) operation achieves increased scale  Demand in the UK from Wholesale and OEM customers  Spain production capacity being expanded to meet projected remains strong, particularly for underfloor heating, thermal demand growth in Europe interface units and control valves  Ongoing management of PEXa supply chain to Australia to  Spain sales growth in line with plan, with significant growth in balance inventory levels external sales in Europe balancing ongoing PEXa production  Commercial team in the UK continues to deliver strong sold to RWC Australia to meet local demand growth in thermostatic sales to the Wholesale market  EBITDA loss reflects investment in selling & marketing resources and capabilities; and some one-off business development costs  Positive EBITDA contribution forecast for the full year to be driven by improved gross margin and reduced SG&A spend in the second half Note 1: Segment net sales includes intercompany sales between segments INVESTOR PRESENTATION 1HFY18 RESULTS 2018 | PAGE 10 Reliance Worldw ide Corporation Limited